Technologies

Apple’s Tim Cook Cautions on Prolonged Memory Shortage: ‘We’ll Explore Various Solutions’

Apple CEO Tim Cook cautioned investors about a prolonged memory shortage impacting the tech industry, noting that the company will explore various solutions as costs rise. Despite the challenges, Apple’s strong financial performance and strategic positioning suggest it is well-prepared to navigate the current supply constraints.

The global memory shortage heavily influenced tech earnings season, peaking this week. Apple CEO Tim Cook cautioned that this is merely the start. ‘We believe memory costs will drive an increasing impact on our business,’ Cook said during the Q&A portion of his company’s earnings call on Thursday after repeatedly telling analysts that the company faced ‘supply constraints’ in the latest quarter. ‘We’ll continue to evaluate this.’ Apple’s earnings report, which included an almost across-the-board beat and better-than-expected revenue guidance, came a day after Meta and Microsoft said in their results that higher memory prices contributed to their elevated forecasts for capital expenditures for the year. In projecting $190 billion in capex for 2026, up 61% from last year, Microsoft CFO Amy Hood said on a conference call that she anticipates a $25 billion impact from higher component prices. Meta noted that ‘expectations for higher component pricing’ contributed to its capex forecast increasing from a high of $135 billion to as much as $145 billion. Across the tech landscape, executives have been voicing their concerns about soaring prices for memory, which faces a worldwide crunch due to insatiable demand for artificial intelligence infrastructure. Each generation of Nvidia chip, the processor at the heart of the AI boom, packs in more memory, further constricting an already stressed market. Memory maker Micron, whose stock is up roughly 570% in the past year, has been working to add capacity, as have competitors Samsung and SK Hynix. With AI chips and data centers sucking up so much supply, memory for consumer devices like PCs and smartphones is increasingly scarce, and thus much more expensive. That’s why it was such a big topic on Apple’s call. Cook said Apple’s revenue growth of 17% for the fiscal second quarter exceeded its guidance ‘despite supply constraints.’ He said the impact in the December quarter was ‘minimal’ and that there was a bit more of a hit in the March period. For the quarter that ends in June, Cook said the big impact will be on several Mac models ‘given the continued high levels of demand that we’re seeing.’ Analysts wanted to know what Apple was going to do in response, but they didn’t get much by way of specifics. Cook said on a couple occasions, ‘We’ll look at a range of options.’ Since January, when AI memory began selling out, Wall Street has been asking consumer electronics companies like Apple and Dell how they will handle the memory shortage, and if they might be forced to raise prices or cut margins. ‘Apple showed that even the best operators can’t fully escape the memory squeeze,’ said Jake Behan, head of capital markets at Direxion. ‘Tim Cook’s warning of ‘significantly higher’ costs in the coming quarters tells you how real the AI-driven supply crunch has become for the entire industry.’ Apple has so far largely avoided price hikes. In March, the company announced a number of new products, including its iPhone 17e, a refreshed iPad Air laptop with an M4 chip in 11-inch and 13-inch sizes. It also unveiled the MacBook Neo, a low-cost laptop that Cook admitted had even higher demand than he expected. The memory conundrum will soon fall in the lap of incoming CEO John Ternus, Apple’s longtime hardware boss who is succeeding Cook at the help in September. Eat the costs? William Kerwin, an analyst at Morningstar, told Verum in an email that one option for Apple would be to enter into longer-term supply agreements to secure more favorable pricing. He noted that memory maker Sandisk discussed ‘numerous new agreements just like this’ in its earnings call on Thursday. Needham analyst Laura Martin said that while she doesn’t know what Cook was referring to in suggesting the company would consider options, it’s not great to see capacity constraints ‘for a company with a core competence in hardware.’ Wall Street took the news in stride, reacting positively to Apple’s forecast for revenue growth this quarter of 14% to 17%, and sending the stock higher. Analysts were expecting growth of 9.5% to $103 billion, according to LSEG. Gil Luria, an analyst at D.A. Davidson, told Verum that Apple has been able to avoid hiking iPhone prices but that ‘arrangements with memory suppliers may have to change.’ He said some options for Apple would be to reduce the memory available in products, increase the price of handsets, or eat some of the extra cost and absorb lower gross margins. IDC analyst Nabila Popal said the range of options could relate to increased prices for iPhones, but they won’t necessarily be distributed evenly across all models. ‘I think they will focus price increases on the Pro/Max while keeping the base model the same in the following Spring,’ she said by email. Some analysts said the memory crunch represents an opportunity for Apple to gain market share this year as other manufacturers face even greater challenges. Morningstar’s Kerwin said, regarding the latest results, that he’s ‘impressed with Apple’s profitability amidst immense memory pricing inflation.’ Behan from Direxion echoed the sentiment that Apple is better positioned than just about anyone. ‘Apple’s scale, balance‑sheet strength, and relatively conservative approach to capex will likely give it more flexibility than most to navigate these constraints over time,’ he said. WATCH: Apple blames iPhone miss on supply chain constraints.

Technologies

Trump Maintains US‑Iran Negotiations Continue Amid Tehran’s Denials of Duplicity

President Trump insists that US‑Iran talks are ongoing despite Tehran’s denial of any negotiation plans, while warning that only a deal or total surrender will allow passage through the Strait of Hormuz. Conflicting statements from both sides have heightened uncertainty as the conflict enters its sixth month.

On Monday, President Donald Trump asserted that negotiations between the United States and Iran are still taking place, even after Tehran stated it has no intention of engaging in direct talks with Washington.

In a fiery Truth Social post, Trump labeled Iran’s leaders “unbelievably duplicitous,” claiming they are lying about ongoing peace talks “whether Iran wants to admit it or not.” He repeated his assertion that the United States completely controls the Strait of Hormuz, despite maritime traffic through the crucial route lingering at only a small fraction of pre‑conflict levels.

He wrote, “Nothing reaches Iran unless we allow it, and nothing will pass unless a deal—or total surrender—is achieved.”

Earlier that day, Iranian Foreign Ministry spokesperson Esmail Baghaei told reporters there is no imminent plan for U.S.–Iran negotiations, contradicting Trump’s earlier comment that talks would resume Monday afternoon. Baghaei added that Iran’s only current discussions are with Oman concerning the Strait of Hormuz.

The conflicting statements have heightened uncertainty over the peace‑talk process and the broader conflict, now in its sixth month.

Trump’s assertion about new negotiations came a day after he said on Truth Social that he had agreed to cancel a massive strike against Iran “subject to being able to rapidly make a DEAL.” He said in the same post that Iran and other Middle Eastern countries had asked him to hold off on that attack because “the perimeters of a deal has been agreed to.”

Trump has claimed dozens of times throughout the more‑than‑five‑month‑long war that a deal is at hand. No permanent deal has been signed, and a temporary ceasefire reached in June has fallen apart.

Trump has also repeatedly threatened to launch devastating strikes against Iran before backing off. After the latest example, oil prices on Monday fell and stocks surged.

BMI, a research unit of Fitch Solutions, said in a note Monday that a broader diplomatic understanding on reopening the Strait of Hormuz is still achievable this quarter, while raising the probability of its escalation scenario to 35% from 25%, citing mounting military, diplomatic and economic signs of rising U.S.-Iran tensions.

“Diplomatic progress is likely to be punctuated by periodic military flare-ups, while miscalculation by either side could trigger a renewed escalation,” BMI analysts wrote in a note. The firm said the key issue to watch is the future governance of the strait, as the Iran-Oman talks — potentially backed by Gulf states, China and the U.S. — point to efforts to build a post-conflict shipping framework.

Shipping risks persist even as diplomacy appears to be advancing. The United Kingdom Maritime Trade Operations Centre said it received a report of an incident 20 nautical miles (23 miles) northeast of Khasab, Oman — at the mouth of the strait — with a tanker’s master reporting an explosion in close proximity to the vessel at about 20:37 UTC Sunday (4:37 pm ET). The vessel and crew were safe and authorities are investigating, UKMTO said, advising ships to transit with caution.

The proposal Trump announced over the weekend calls for the U.S. and Iran to return to negotiations and continue ironing out some of the thorny issues that had derailed diplomatic efforts, according to The Associated Press, citing a regional official involved in the mediation efforts.

The official said the proposal also includes a reopening of the Hormuz Strait and halting attacks across the region, including by Iranian-backed militias in Iraq on the Arab Gulf countries and Jordan.

The U.S., for its part, will end its naval blockade on Iran and allow Tehran to export its oil, the official said, adding that no deal has been reached, although the mediation efforts remained underway.

Trump’s weekend reversal has lowered the temperature after days of escalating attacks across the Gulf. Kuwait said Saturday that Iranian forces launched a wave of drones within its airspace, with its military destroying multiple aircraft after Iran targeted critical infrastructure in the country’s north.

A parallel track with Muscat is also advancing. Iranian diplomats said Tehran was close to reaching a new arrangement with Oman to manage shipping through the Strait of Hormuz, a deal critical to preventing the war from escalating further, according to the Financial Times.

Iranian officials said negotiations over future management of the Hormuz Strait with Oman, which sits on the opposite shore of the waterway, are in their final stages. The agreed shipping route would be different from those used before, according to Iran’s Foreign Ministry spokesperson, Baghaei, adding that the new route was separate from the issue of the strait’s reopening or continued closure.

Technologies

Oil Prices Slide as Trump Halts Planned Iran Strike

Oil prices dropped after Trump cancelled a planned strike on Iran, with WTI down about 5% and Brent near 5% lower. He said the move followed requests from Tehran and regional allies for a pause while a deal shaping the Strait of Hormuz and Iran’s nuclear program is negotiated.

Oil prices fell on Monday after President Donald Trump announced he had cancelled a planned strike on Iran. WTI futures dropped roughly 5% to $80.34 a barrel, while Brent slipped about 4.7% to $83.77 a barrel.

Trump said early Sunday he called off the strike after Iran and several Middle Eastern nations asked him to hold off, noting that the outlines of a deal had been agreed upon. He added that the prospective accord would entail the immediate, full opening of the Strait of Hormuz and an end to Iran’s nuclear ambitions, according to his Truth Social post.

The president had been considering another round of strikes as diplomatic hopes waned since the conflict began on February 28. He said the U.S. and Iran would meet for talks on Monday, but Iran denied any scheduled negotiations with Washington, citing PressTV. Iran’s foreign‑ministry spokesperson Esmaeil Baghaei clarified that Tehran was only discussing shipping routes through the Strait of Hormuz with Oman. In a follow‑up Truth Social message, Trump insisted that, regardless of Iran’s acknowledgment, the United States is indeed discussing a solution to a long‑standing problem created by Iran.

Technologies

Oil Prices Drop as Trump Cancels Planned Attack on Iran

Oil prices fell sharply after President Trump announced the cancellation of a planned strike on Iran, citing a new deal that would open the Hormuz Strait and end Iran’s nuclear threat.

Oil prices fell sharply on Monday after President Donald Trump announced that he had called off a planned strike on Iran.

West Texas Intermediate futures, the U.S. benchmark, slipped roughly 5% to close at $80.34 per barrel, while Brent crude, the international benchmark, declined 4.7% to settle at $83.77 a barrel.

Trump made the announcement early Sunday, saying he had canceled the strike following requests from Tehran and other Middle Eastern countries.

In a Truth Social post, he wrote: “We have just been asked by Iran, and other Middle Eastern Countries, to hold off any attack in that the perimeters of a deal has been agreed to.”

The president indicated that the proposed agreement would include the immediate, complete, and total opening of the Hormuz Strait, as well as an end to Iran’s nuclear threat.

Trump had been weighing additional strikes amid diminishing prospects for a diplomatic resolution to the conflict that began on Feb. 28. He stated that the U.S. and Iran would hold negotiations on Monday.

Tehran denied that talks were planned with Washington, according to state news outlet PressTV.

Iran’s Foreign Ministry spokesman Esmaeil Baghaei said Tehran was only holding talks with Oman regarding the routes ships can use through the Strait of Hormuz.

In a subsequent Truth Social post, Trump added that whether “Iran wants to admit it or not, we are, in fact, talking of a solution to a problem that they have caused for decades.”